Zettai, the Singapore-based parent company of Indian crypto exchange WazirX, is seeking court approval to move forward with a recovery plan for creditors impacted by a cyberattack earlier this year.
The move comes after a major hack on WazirX in April 2024, resulting in the theft of millions of dollars worth of cryptocurrency from user accounts. The incident significantly tarnished the exchange’s reputation and left a trail of financial losses for its customers.
Zettai has applied with the Singapore High Court, requesting permission to convene a meeting with WazirX’s creditors. During this meeting, Zettai plans to present a “scheme of arrangements” outlining a roadmap for recovering lost funds and distributing them fairly among creditors.
“The proposed scheme of arrangement, filed in the court under the Companies Act 1967, prioritises creditors by outlining a structured roadmap for recovery. After the court’s permission, Zettai will put the proposed scheme before its creditors for voting. The scheme will only become effective after approval from the majority of the creditors and sanction from the court,” WazirX spokesperson told ET.
The proposal’s success hinges on its transparency and fairness. Details of the plan, including the proposed repayment structure, timeframe, and source of recovery funds, haven’t been publicly disclosed yet. A court hearing will determine whether Zettai receives permission to hold the creditor meeting and present its plan.
If the court approves Zettai’s application, creditors can review and vote on the proposed recovery plan. For the plan to be implemented, creditors must give a majority vote.
WazirX, a leading Indian cryptocurrency exchange, boasts over 16 million registered users. Of these, more than 4 million actively hold cryptocurrency in their WazirX accounts. The platform allows users to buy, sell, and trade hundreds of different cryptocurrencies. Users can access WazirX through its mobile apps or website.
To recall, on July 18, WazirX reportedly suffered a cyberattack by unknown hackers. The attackers compromised one of the platform’s wallets, stealing approximately $234 million in cryptocurrency tokens, nearly half the total value of cryptocurrency held on the platform.
